Opto Circuits to buy European medical equip firm

Mumbai, 4th December '06: Opto Circuits (India) Ltd. (OCI), India's leading manufacturer of healthcare equipments, has signed a Letter of Intent to acquire a medical devices company in Western Europe for an estimated Rs. 72 crore.

The target acquisition is into design and manufacturing of a wide range of balloon catheter assemblies and related products for coronary, renal and other applications and has projected revenues of around Rs. 80- 100 crore. The deal is likely to be an all cash deal and is expected to close in the next 8-10 weeks. The process is presently subject to financial and legal due diligence.

Explaining the rationale of the acquisition, Vinod Ramnani, Chairman and Managing Director, OCI, comments "After acquiring EuroCor Gmbh, our synergies in the stent- catheter and other peripheral systems have been well placed. Our latest move is in-line with our strategy of tapping new markets and growing our customer base. Going forward, we propose to shift the manufacturing base to India and leverage on the Indian cost advantage."

OCI acquired EuroCOR GmbH (manufacturer of Cardiac and Peripheral Stents of various types, including Drug Eluting Coronary Stents used in Critical Cardiac Care) of Bonn, Germany in January '06.

About Opto Circuits (India) Ltd.:

Opto Circuits (India) Ltd. (OCI) (BSE Code: 532391; NSE Symbol: OPTOCIRCUI) is a leading manufacturer of healthcare equipments in India. OCI's product profile includes sensors, probes, pulse oxymeters, patient monitoring systems and digital thermometers. In 2001, OCI acquired 60% stake in Advanced Micronic Devices to market its equipments in India. OEMs contribute 80% of sales while MediAid (100% US-based subsidiary) contributes the balance.

MediAid came into existence with the acquisition of the patient monitoring division of Palco Labs, US, in end-2003, and now markets OCI's products in the US markets directly. Visit us at www.optoindia.com